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QUESTION FOUR i. Ron had appointed Dobby as his used-car business agent. One day, Ron instructed Dobby to burn his competitor's car, Harry. Ron promised

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QUESTION FOUR i. Ron had appointed Dobby as his used-car business agent. One day, Ron instructed Dobby to burn his competitor's car, Harry. Ron promised Dobby to indemnify him against all consequences of the act. Relying on this promise, Dobby burnt Harry's car. Subsequently, Harry sued Dobby for damages amounting to RM20,000 which Dobby paid immediately. Dobby wants to recover the RM20,000 from Ron and the legal expenses that he had incurred. Advise Dobby based on legal provisions in the Contracts Act 1950. (9/marks) ii. On 1 November 2020, Hans appointed Olaf as his agent to buy a car not exceeding the price of RM120,000. On 10 November 2020, Olaf went to Vemal Auto City (the seller) and ordered a car sold at the price of RM140,000 and informed the seller that he was buying the car on behalf of Hans. On 30 November 2020, the seller delivered the car to Hans. Hans inspected the car and upon satisfaction with its conditions, he immediately signed a letter of acceptance. However, after three (3) months of using the car, Hans refused to pay monthly instalment on the ground that there was no contract between him and the seller because his agent, Olaf, had exceeded his authority when he bought the car. The seller was not satisfied with this situation and claimed that a contract had been concluded between Hans and Vemal Auto City by ratification and that all the conditions of ratification had been fulfilled. Advise Hans based on legal provisions in the Contracts Act 1950. Support your answer with ONE (1) decided case if applicable. (16 Markah/marks) QUESTION FOUR i. Ron had appointed Dobby as his used-car business agent. One day, Ron instructed Dobby to burn his competitor's car, Harry. Ron promised Dobby to indemnify him against all consequences of the act. Relying on this promise, Dobby burnt Harry's car. Subsequently, Harry sued Dobby for damages amounting to RM20,000 which Dobby paid immediately. Dobby wants to recover the RM20,000 from Ron and the legal expenses that he had incurred. Advise Dobby based on legal provisions in the Contracts Act 1950. (9/marks) ii. On 1 November 2020, Hans appointed Olaf as his agent to buy a car not exceeding the price of RM120,000. On 10 November 2020, Olaf went to Vemal Auto City (the seller) and ordered a car sold at the price of RM140,000 and informed the seller that he was buying the car on behalf of Hans. On 30 November 2020, the seller delivered the car to Hans. Hans inspected the car and upon satisfaction with its conditions, he immediately signed a letter of acceptance. However, after three (3) months of using the car, Hans refused to pay monthly instalment on the ground that there was no contract between him and the seller because his agent, Olaf, had exceeded his authority when he bought the car. The seller was not satisfied with this situation and claimed that a contract had been concluded between Hans and Vemal Auto City by ratification and that all the conditions of ratification had been fulfilled. Advise Hans based on legal provisions in the Contracts Act 1950. Support your answer with ONE (1) decided case if applicable. (16 Markah/marks)

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